Analyzing WesBanco (WSBC) and First Federal of Northrn Mchgn Bncrp (FFNM)

WesBanco (NASDAQ:WSBC) and First Federal of Northrn Mchgn Bncrp (OTCMKTS:FFNM) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

57.0% of WesBanco shares are held by institutional investors. 4.1% of WesBanco shares are held by company insiders. Comparatively, 13.5% of First Federal of Northrn Mchgn Bncrp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares WesBanco and First Federal of Northrn Mchgn Bncrp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WesBanco $421.26 million 5.24 $94.48 million $2.45 16.51
First Federal of Northrn Mchgn Bncrp N/A N/A N/A N/A N/A

WesBanco has higher revenue and earnings than First Federal of Northrn Mchgn Bncrp.

Dividends

WesBanco pays an annual dividend of $1.16 per share and has a dividend yield of 2.9%. First Federal of Northrn Mchgn Bncrp pays an annual dividend of $0.20 per share. WesBanco pays out 47.3% of its earnings in the form of a dividend. WesBanco has increased its dividend for 7 consecutive years. WesBanco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares WesBanco and First Federal of Northrn Mchgn Bncrp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WesBanco 24.22% 9.04% 1.29%
First Federal of Northrn Mchgn Bncrp N/A N/A N/A

Analyst Recommendations

This is a summary of current ratings and price targets for WesBanco and First Federal of Northrn Mchgn Bncrp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WesBanco 0 3 1 0 2.25
First Federal of Northrn Mchgn Bncrp 0 0 0 0 N/A

WesBanco currently has a consensus price target of $47.00, indicating a potential upside of 16.22%.

Summary

WesBanco beats First Federal of Northrn Mchgn Bncrp on 8 of the 10 factors compared between the two stocks.

About WesBanco

WesBanco, Inc. operates as the holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, and mortgage banking and insurance services in the United States. It operates in two segments, Community Banking, and Trust and Investment Services. The company offers commercial demand, individual demand, and time deposit accounts; money market accounts; interest bearing and non-interest bearing demand deposits, as well as savings deposits; and certificates of deposit. It also provides commercial real estate loans; commercial and industrial loans; residential real estate loans, including loans to purchase, construct, or refinance borrower's home; home equity lines of credit; installment loans to finance the purchases of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and commercial, mortgage, and individual installment loans. In addition, the company offers trust and investment services, as well as various investment products comprising mutual funds and annuities; and securities brokerage services. Further, WesBanco, Inc., through its non-banking subsidiaries, acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds. As of December 31, 2017, the company operated through 172 branches and 160 ATMs in West Virginia, Ohio, western Pennsylvania, Kentucky, and southern Indiana, as well as 4 loan production offices in West Virginia, Ohio, and western Pennsylvania. WesBanco, Inc. was founded in 1968 and is headquartered in Wheeling, West Virginia.

About First Federal of Northrn Mchgn Bncrp

First Federal of Northern Michigan Bancorp, Inc. operates as the bank holding company for First Federal of Northern Michigan that provides various financial services to individuals, families, and businesses. It offers NOW and money market accounts, and savings accounts, as well as certificates of deposit. The company also provides one- to four-family residential real estate mortgages, commercial real estate loans, commercial loans, and consumer loans, as well as investment securities and mortgage-backed securities. It operates through eight full-service facilities located in Alpena, Cheboygan, Emmet, Iosco, Otsego, Montmorency, and Oscoda Counties, Michigan. First Federal of Northern Michigan Bancorp, Inc. was founded in 1957 and is based in Alpena, Michigan.

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